you work 52 weeks in a year?
Of course not, most salaried employees actually only work
about 48 weeks in a year! Most
employees collect at least 2 weeks paid vacation, 1 week for
sick time and another week in the observance of national
the average employee only delivers 1,920 hours of production,
assuming a 40-hour week, though they are paid for 2,080 hours.
would only be fair that the consultant enjoy the same time off
as any average employee.
Therefore, the consultant only has 960 total billable
hours compared to the 2,000 annual hours of a salaried employee.
(20 hours per week x 48 weeks = 960 billable hours)
employees take their benefits for granted; their employer
provides an office, computer, perhaps a lease car, expense
account and a wide spectrum of insurance and retirement planning
independent consultant must bear all these costs himself, thus
to net the same annual income of an average salaried employee, his fees must
include his operating expenses.
Operating expenses for an independent consultant range
between $10,000 to as much as $50,000 per year.